We have an epidemic of people who lack real self-confidence, because they were taught it's easy to win. Their confidence is thin, and easily damaged. Real self-confidence doesn't crumble with failure, and doesn't need constant reinforcement for participation. The "everyone gets a medal" is a bastardization of the concept of rewarding people for effort, rather than just result (which is actually sound advice, because it teaches them that failing is okay). But if someone isn't putting in any real effort, rewarding them isn't helpful or supportive.